Top paid US CEOs. How many can you name? Which were the best S&P500 stocks since 2010? What’s the overlap? Which companies made most profit?
Note, Larry Page = $1 salary, Alphabet CEO, but Sundar Pichai, GOOG CEO is at $200m so almost double Hock Tan.
Of course, there are several problems with this simplistic look (length of CEO tenure) and there are several academics who warn of the danger of pay ratios (eg Alex Edmans).
Still it is noticeable that so few CEOs presided over the best stock returns.
And out of the best paid, not that many CEOs preside over the largest profit.
Source: Bloomberg. I doubt anyone is silly enough to think there is any implied recommendation or analysis here. But in our increasingly disclaimered world, there is not plus see disclaimer link on site. These are total stock returns since Jan 2010 until Feb 2018. No particular reason for date range, only a relatively log length of time of approx a business cycle.
Top 20 paid MSCI World CEOs by total $ comp.
A very similar result to above with just 4 new entries if you look at ex_US companies.
WPP Plc (WPP): Martin Sorrell ($65.3m).
Valeant Pharma (VRX): Joe Papa ($62.7m).
Liberty Global (LBTYA): Mike Fries ($40.1m).
BankGuam Holding (BKG): Tony Pidgley ($36.0m)
H/T Ross Yarrow at Baird. I source further data from Bloomberg.
If you'd like to feel inspired by commencement addresses and life lessons try: Neil Gaiman on making wonderful, fabulous, brilliant mistakes; or Nassim Taleb's commencement address; or JK Rowling on the benefits of failure. Or Charlie Munger onalways inverting; Sheryl Sandberg ongrief, resilience and gratitude or investor Ray Dalio on Principles.
Cross fertilise. Read about the autistic mind here.
More thoughts: My Financial Times opinion article on the importance of long-term questions to management teams and Environment, Social and Governance capital.